Central Bank of the Islamic Republic of Iran
The Central Bank of the Islamic Republic of Iran (Persian: بانک مرکزی جمهوری اسلامی ايران, Bank Markazi Jomhouri Islami Iran) is the central bank of Iran.
History
The Ilkhanate were one of the rulers of Iran that tried to introduce paper currency in Iran in the late 13th century, without success.[1]
In modern banking, the British first opened the Imperial Bank of Persia in 1889, with offices in all major cities of Persia and India. To compete with the bank of Britain, Imperial Russia also opened the Russian Loan and Development Bank.[2]
The first state owned Iranian bank, Bank Melli Iran was established in 1927 by the government of Iran.[3] The bank's primary objective was to facilitate government's financial transactions and to print and distribute the Iranian currency (rial and toman). For more than 33 years, Bank Melli Iran was acting as the central bank of Iran with the responsibility to maintain the value of Iranian Rial.
In August 1960, the Iranian government established the Central Bank of Iran (CBI) and separated all central banking responsibilities from Bank Melli Iran and assigned it to the newly formed central bank[4].
The Central Bank of Iran was renamed to the Central Bank of the Islamic Republic of Iran immediately after the Islamic revolution and the overthrow of the Shah of Iran. Scope and responsibilities of the Central Bank of the Islamic Republic of Iran (CBI) have been defined in the Monetary and Banking Law of Iran[5]
CBI maintains a musuem of historic and ancient jewelry owned and used by the ex-kings of
Governors of the Central Bank of Iran[6]
| Governor | Date |
|---|---|
| Ebrahim Kashani | 1960 |
| Ali Asghar Poor Homayoon | 1961 |
| Mahdi Samii | 1964 |
| Khodadad Farmanfarmayan | 1969 |
| Mahdi Samii | 1970 |
| Abdolali Jahanshahi | 1971 |
| Mohammad Yeganeh | 1973 |
| Hassan-Ali Mehran | 1975 |
| Yoosef Khoshkish | 1978 |
| Mohammad Ali Molavi | 1979 |
| Alireza Nobari | 1979 |
| Mohsen Nourbakhsh | 1981 |
| Majid Ghasemi | 1986 |
| Seyed Mohammad Hossein Adeli | 1989 |
| Mohsen Nourbakhsh | 1994 |
| Mohammad Javad Vahhaji (acting) | 2003 |
| Ebrahim Sheibani | 2003 |
| Tahmasb Mazaheri | 2007 |
Objectives
The objectives of the Central Bank of the Islamic Republic of Iran as per its charter and according to section 10 of the Monetary and Banking Law of Iran[7] are as follows:
- Maintaining the value of national currency
- Maintaining the equilibrium in the balance of payments
- Facilitating trade-related financial transactions
- Improving the growth potential of the country
Islamic banking
All banks in Iran must follow the banking principles and practices described in the Islamic Banking law of Iran passed in 1983 by the Islamic Majlis of Iran [8]. According to this law, banks can only engage in interest-free Islamic transactions (interest is considered as usury or riba and is forbidden by Islam and the holy book of Quran). These are commercial transactions that involve exchange of goods and services in return for a share of the assumed "profit". All such transactions are performed through Islamic contracts, such as Mozarebe, Foroush Aghsati, Joale, Salaf, and Gharzol-hassane. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines.
Key Statistics
- Reserves of foreign exchange & gold: US$40.06 billion (2005 est).
-
- Composition: In 2007, 10% of the Reserves were held in Gold, 20% in US dollars (down from 40% in 2006), the rest mostly in Euro and other major currencies (ie, Yen, British Pound and the Swiss Franc).
- Usage: Part of the reserves are held in the $12 billion Oil Stabilization Fund, designed for investment or for
budget support if oil prices - Iran's main foreign exchange earner - fall perilously low.[9]
- Exchange rates: rials per US dollar - 9,246.94 (2006), 8,964 (2005), 8,885 (2004), 8,193.89 (2003)
- note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002.
- Pre-unification, rials per US dollar:
- The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $71.7 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $153.6 billion.
BIS, IMF and Iran
The Central Bank of Iran has an observer status at the annual meetings of the Bank for International Settlements (BIS) in Basel, Switzerland.
Iran joined the International Monetary Fund (IMF) on December 29, 1945[12]. CBI governors attend IMF's board discussions on Iran on behalf of the government. These meetings are usually held once a year in Washington D.C.[13].
Significant Buildings
- Mirdamad Building - 144 Mirdamad Boulevard, Tehran, Iran[14]
- Ferdowsi Building - Ferdowsi Ave, Tehran, Iran
- Jewelry Musuem - Ferdowsi Ave, Tehran, Iran[15]
Contacts
- Address: 144 Mirdamad Boulevard, Tehran, Iran
- URL: www.cbi.ir
- Swift Address: BMJIIRTH
References
- ^ Patrick Clawson. Eternal Iran. Palgrave. 2005. Coauthored with Michael Rubin. ISBN 1-4039-6276-6 p.168
- ^ Patrick Clawson. Eternal Iran. Palgrave. 2005. Coauthored with Michael Rubin. ISBN 1-4039-6276-6 p.41
- ^ Patrick Clawson. Eternal Iran. Palgrave. 2005. Coauthored with Michael Rubin. ISBN 1-4039-6276-6 p.55
- ^ About the Central Bank of Iran. The Central Bank of the Islamic Republic of Iran.
- ^ Monetary and Banking Law of Iran. Central Bank of the Islamic Republic of Iran.
- ^ http://www.cbi.ir/page/1570.aspx
- ^ Monetary and Banking Law of Iran. Central Bank of the Islamic Republic of Iran.
- ^ Iran's interest-free banking law. Central Bank of Iran.
- ^ We welcome the euro, says Tehran
- ^ http://www.farsinet.com/toman/exchange.html
- ^ CIA factbook
- ^ Iran's Financial Position at IMF. IMF.
- ^ Iran and IMF.
- ^ Central Bank of Iran. Central Bank of Islamic Republic of Iran.
- ^ Jewelry Musuem. All Iranian Musuems.
See also
- Iranian rial
- Tehran Stock Exchange
- Shetab Banking System
- Economy of Iran
- Privatization in Iran
- Iranian oil bourse
- Ministry of Petroleum of Iran
- Imperial Bank of Persia
- Islamic banking
- History of banking
- List of central banks
Further reading
External Links
- (Persian) (English) Central Bank of the Islamic Republic of Iran official site (including statistics about Iran's economy)
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